Hai Phong Thermal Power (HND) H1 2026 Profit Up 25% Despite CEO Arrest

Overview

Hai Phong Thermal Power Joint Stock Company (HND) reported strong financial results for the first half of 2026, with net profit rising 25% year-on-year to over VND 508 billion, even as its CEO was arrested in May on document forgery charges. The company, which operates a 1,200 MW coal-fired power plant in northern Vietnam, also saw revenue grow 8% to nearly VND 6,081 billion, driven by higher electricity output and financial income.

Key Facts

• HND’s Q2 2026 net revenue reached VND 3,535 billion, up nearly 19% year-on-year.
• Q2 2026 net profit was VND 292 billion, an increase of 21% versus Q2 2025.
• H1 2026 net profit totaled over VND 508 billion, up 25% from the same period in 2025.
• H1 2026 gross profit rose 28% to nearly VND 646 billion.
• Financial income in Q2 surged to nearly VND 4 billion, 46 times higher than Q2 2025.
• The company had no short-term or long-term debt as of June 30, 2026.
• Total assets stood at approximately VND 7,582 billion, up 3% from the start of the year.
• On May 21, 2026, CEO Duong Son Ba was arrested for alleged document forgery; on June 2, Tran Xuan Truong was appointed acting CEO.

What Happened

Hai Phong Thermal Power (HND) released its Q2 2026 financial statements on July 20, 2026, showing robust operational performance despite a significant governance event. The company’s net profit for the first half of 2026 reached VND 508 billion, a 25% increase from H1 2025, while revenue grew 8% to VND 6,081 billion. The improvement was driven by higher electricity generation and a sharp rise in financial income, which in Q2 alone jumped 46-fold to nearly VND 4 billion due to interest on deposits.

Notably, the company’s financial position remains strong with zero debt and equity of over VND 6,409 billion, boosted by retained earnings. However, the positive results come against the backdrop of the arrest of CEO Duong Son Ba on May 21, 2026, for allegedly forging documents of state agencies. The company quickly appointed Deputy CEO Tran Xuan Truong as acting CEO on June 2. HND has also been mentioned in a broader environmental monitoring scandal involving 59 companies and 74 defendants.

Market Context

HND shares trade on the UPCOM exchange and closed at VND 10,000 on July 20, 2026. The stock has likely been under pressure since the CEO’s arrest in May, but the strong earnings report may provide some support. As a coal-fired power generator, HND benefits from stable demand in northern Vietnam, but the sector faces regulatory and environmental scrutiny. The company’s debt-free balance sheet is a positive differentiator among Vietnamese utilities.

Strategic Significance

HND’s ability to deliver double-digit profit growth despite a leadership crisis underscores the operational resilience of its 1,200 MW plant. The zero-debt position provides financial flexibility and reduces risk from rising interest rates. However, the CEO arrest and the company’s involvement in the environmental monitoring scandal introduce governance and legal overhang. Long-term investors will need to weigh the stable cash flows from power generation against potential regulatory penalties or management disruption.

What to Watch

• Outcome of the legal proceedings against former CEO Duong Son Ba and any potential fines or sanctions on HND.
• Q3 2026 earnings release in October 2026 to see if operational momentum continues under the new acting CEO.
• Any changes in coal procurement costs or electricity offtake agreements that could impact margins.
• Updates on the environmental monitoring scandal and whether HND faces further regulatory action.
• Potential dividend policy changes given the strong retained earnings and debt-free status.